Monterey Gourmet Foods announces manufacturing restructuring program

24/03/06 Monterey Gourmet Foods has announced the first phase of a manufacturing restructuring program designed to reduce the Company's cost structure, increase efficiencies and improve profitability. The program is projected to result in operating cost savings of nearly $1 million per year effective midyear 2006.

The restructuring program has multiple elements that will contribute to a much more streamlined and efficient operation," stated Jim Williams, President/CEO of Monterey Gourmet Foods. "Key elements of this program include consolidating production of our two Salinas, CA plants into the primary Moffett Street plant, and transferring packaged sauce production to our CIBO Naturals plant in Seattle, WA. As a result of this consolidation, the Company will discontinue its lease of the 40,000 sq. ft production area in the Abbott Street facility. Our distribution center will remain at that site."

Williams further stated, "The cost associated with this restructuring will be approximately $400,000; $300,000 will be capital expense and $100,000 will be operating expense in the first and second quarters of 2006. Consequently, we will see no negative effect from this program in 2006."

Monterey Gourmet Foods manufactures USDA inspected, fresh gourmet refrigerated food products at its integrated 143,000 square foot corporate headquarters, distribution, and manufacturing facilities in Salinas, (Monterey County) California, its organic food production facility in Eugene, Oregon and its newly acquired facility in Seattle, Washington. Monterey Gourmet Foods has national distribution of its products in over 9,700 retail and club stores throughout the United States and selected regions of Canada, the Caribbean, Latin America, and Asia Pacific.

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